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HomeMy WebLinkAbout2024.05.17 IMC Executed MinutesAlaska Intertie Management Committee (IMC) REGULAR fv1�L:T'NG MINUTE - Alaska Energy Authority Board Room Friday, May 3, 2024 1. CALL TO ORDER Chair Andrew Laughlin called the meeting of the Alaska Intertie Management Committee to order on May 3, 2024, at 9:00 a.m. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Andrew Laughlin (Chugach Electric Association (CEA)); Nathan Minnema (Golden Valley Electric Association (GVEA) (arrived late)); Ed Jenkin (Matanuska Electric Association (MEA)); and Bill Price (Alaska Energy Authority (AEA)). A quorum was established. 3. PUBLIC ROLL CALL Jennifer Bertolini (AEA); Bryan Carey (AEA); Pamela Ellis (AEA); Pat Domitrovich (AEA); Kent Sullivan (AEA Counsel); Joel Paisner (Ascent Law Partners); Dan Bishop (GVEA); Keith Palchikoff (GVEA); Andrew Patrick (HEA); Tracy Hayes (MEA); Lance McKimson (MEA); and Jon Sinclair (MEA). 4. PUBLIC COMMENTS — None S. AGENDA APPROVAL MOTION: A motion was made by Mr. Jenkin to approve the agenda as presented. Motion seconded by Mr. Price. The agenda was approved without objection. 6. APPROVAL OF PRIOR MINUTES — March 22, 2024 MOTION: A motion was made by Mr. Jenkin to approve the Meeting Minutes of March 22, 2024, as presented. Motion seconded by Mr. Price. The Minutes of March 22, 2024 were approved without objection. 7. NEW BUSINESS - None 8. OLD BUSINES !MC Meeting Minutes 0510312024 Page 1 of 5 8A. Approval of FY25 IMC Budget Chair Laughlin reminded members that Pam Ellis, AEA Controller, reviewed the budget at the previous meeting. The budget was posted to the website in April. MOTION: A motion was made by Mr. Jenkin to submit the Fiscal Year 2025 Budget as presented to Alaska Energy Authority for final approval. Motion seconded by Mr. Price. Mr. Jenkin asked if any public comments have been received. Jennifer Bertolini, AEA, stated there were no public comments. Mr. Jenkin asked if the Intertie Operating Committee (IOC) or other committees have made changes since the budget was posted. Mr. Price indicated that discussion regarding the budget occurred at the IOC, and no changes were made. Mr. Jenkin asked if effort was made to identify the construction season within the budget year, rather than dispersing the funding equally over the budget years. Mr. Price discussed that this budget reflects a typical IMC budget and will be managed similarly to last year's budget. There were no other questions. A roll call vote was taken, and the motion to submit the FY 2025 Budget as presented to AEA for final approval was approved unanimously. 9. COMMITTEE REPORTS 9A. Budget to Actuals Chair Laughlin requested Ms. Ellis to provide the Budget to Actuals Report for the period ending February 29, 2024. Ms. Ellis discussed that total revenue usage is at 86%. This is $725,466 more than budgeted and is due to higher than anticipated energy uses for the months of July through January. However, a decline in usage occurred in February. The budgeted MWh use for February was 26,783, and only 14,790 MWh were used. Usage for the remainder of the year is anticipated to be down. Ms. Ellis explained that operating expenses for the period were less than budgeted by $2,267,175. Several categories remain significantly under budget. The budget is annualized. If outstanding invoices are paid within the next few months, then budget and actual expenses will align better. The actual administrative expenses for the period were less than budgeted by $18,255. This is due to less than anticipated labor and indirect costs. For this period ending February 29, 2024, the surplus of expenses was $3,058,500. There were no questions. 9B. IOC Report Chair Laughlin requested Mr. Sinclair present the IOC Report. Mr. Sinclair noted a correction for the report; the grant applications were submitted to and approved by Department of Energy (DOE), not AEA. The general schedule to move forward with the two grant projects are outlined !MC Meeting Minutes 0510312024 Page 2 of 5 in the report. These plans were included in the FY25 budget. GVEA will be the project manager (PM) for both projects. Mr. Sinclair discussed that the IOC is getting closer to their goal of completing the draft form of the frequency response policy, which will be brought before the IMC for approval. Additionally, the IOC reviewed the potential expansion of the Hawk Lane solar installation that impacts the northern Intertie. Based on both the electrical clearances and operational requirements, no encroachment into the right-of-way is recommended by the IOC. Mr. Sinclair discussed that the System Studies Subcommittee (SSS) is working with EPS to update the governor model in PSS/e for Bradley Lake. He explained why the review was delegated to the SSS. The request is that the IMC approve the change order for this work. The information is within the IMC's packet. The change order funding is included in the FY25 budget. The SSS is waiting on the IMC's approval or denial to proceed. Additionally, the SSS issued a request for proposal (RFP) to study the impacts of a line upgrade to 230 KV. More information will be presented at the next meeting. The SSS is also reviewing a draft RFP for an IBR study. Funding for the IBR study is included in the FY25 budget. Chair Laughlin asked for clarification regarding the presented change order. Mr. Sinclair noted that his understanding is limited to the information provided. He asked if anyone of the SSS is available to comment. Keith Palchikoff, GVEA, discussed the history of the modeling effort. He explained that specific oscillation events occurred in the past, and EPS was hired to conduct an event analysis. However, their software model was unable to recreate the oscillation and was unable to capture the behavior of Bradley Lake correctly. He discussed that the SSS provided EPS with accurate recordings of three alternative significant disturbance events. EPS issued a brief report explaining their efforts. The SSS was not satisfied with the consistency of the results and asked for better documentation of the model. Mr. Palchikoff explained his understanding of the change order is that the additional funding is for EPS to update the model, to work to improve the fidelity of the model, and to provide an industry standard modeling report. Mr. Price continued comments regarding the change order. He explained that the issue stalled out in the SSS. It was noted that this is a Bradley Lake issue. The IMC does not contain a mechanism for Homer Electric Association (HEA) to contribute to administrative costs, which includes this $57,000 change order. Mr. Price discussed that funding could occur through the IMC, as currently planned, or the same scope of work and contractors could be procured under the direction of the SSS and funded through the Strategic Asset Plan. Mr. Price noted that the SSS does not have a preference as to which way to move forward. Mr. Price requested the IMC decide how to proceed and advise the SSS. Mr. Jenkin commented that HEA traditionally has had a seat on the SSS with a vote, and that HEA has previously contributed to fund studies. Mr. Jenkin asked for clarification if HEA is not contributing to the current work studies regarding the Bradley Lake oscillations. Mr. Price responded that HEA is not contributing to the SSS Committee's budget at this time. He is only aware of HEA's contribution regarding the study for the Synchrophaser Project study. IMC Meeting Minutes 0510312024 Page 3 of 5 Mr. Jenkin asked Mr. Palchikoff if HEA is participating in the SSS meetings. Mr. Palchikoff confirmed that HEA is participating in the SSS meetings. Mr. Jenkin inquired if HEA has been asked to contribute financially. Mr. Price commented that Mike Tracy of HEA attends the meetings and is included in the discussion, but that HEA is not currently contributing financially. Chair Laughlin asked if discussion has occurred with HEA to determine if they are willing and able to contribute financially through the SSS. Mr. Price believes that HEA would not be resistant to contributing. Chair Laughlin requested Mr. Price to have the discussion with HEA and request that HEA contribute financially through the SSS. Mr. Price agreed. Mr. Jenkin recommended that the SSS proceed with the study, and on a parallel track, he recommended that Mr. Price discuss with HEA regarding their ability to contribute to the SSS and the logistics that would entail. Mr. Jenkin commented that the discussion regarding HEA's contribution should in no way impede or delay the work of the study. Mr. Price agreed. Mr. Jenkin acknowledged that MEA is Chair of the SSS. He requested that Mr. Sinclair comment. Mr. Sinclair agreed to relay the previous directions to the Chair of the SSS. There were no other comments or questions. 9C. Operator's Report Chair Laughlin advised he will review the included Operator's Report since Russell Thornton, CEA, is not in attendance today. The MWh usage from FY23 to FY24 increased by 21%. No trips have occurred on the Alaska Intertie since the last meeting. The IOC quarterly reliability report findings are listed and shown in the document. Mr. Jenkin commented regarding frequency response. He requested that the table include the time of the event next to the date of the event. He believes this information would be helpful to understand if the trips occurred during peak periods or during minimal generation periods. Chair Laughlin agreed. Chair Laughlin identified the included print-out of an oscillation event that occurred on April 20, 2024. There were no further comments or questions. 10. MEMBER COMMENTS Mr. Price requested to correct typographical errors in the previous meeting minutes. There were no objections. Mr. Price noted that "IVR" should be corrected to "IBR" within Item 9b. He expressed appreciation to participants today. Chair Laughlin expressed appreciation for the reports and for the information. 11. NEXT MEETING DATE — June 21, 2024 IMC Meeting Minutes 0510312024 Page 4 of 5 Chair Laughlin stated that the next meeting date is June 21, 2024. 12. ADJOURNMENT There being no further business of the IMC, the meeting adjourned at 9:31 a.m. MOTION: A motion was made by Mr. Jenkin to adjourn. Motion seconded by Mr. Price. The motion to adjourn was approved without objection. Andrew Laughlin, Cl4ir r " Bill Price?, AEA Secretary IMC Meeting Minutes 0510312024 Page 5 of 5